Question: A large distributor has 6 retail outlets. Each outlet orders independently but at the same time as all other independent warehouses. Demand at each outlet
A large distributor has 6 retail outlets. Each outlet orders independently but at the same time as all other independent warehouses. Demand at each outlet is 308,769 units per year. Carrying cost is $82 per unit per year. Ordering cost is $1,986 per order. Compute the summation of EOQ of all warehouses in this decentralized ordering system.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
